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Assignment 6 - Essay Example

Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has decided to expand his business into the Czech Republic. He knows it is a risky decision; when he became a franchisor, he had to overcome a lot of difficulties. Steve anticipates he will face some of these difficulties again at the new location in Prague, Czech Republic…

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and Czech Republic, especially reinforced after 1993 ("U.S. Department of State," July 2009). Since Steve proposes to set up Pizza outlets at Czech, he must address issues related to their eating habits, and factors that would affect the customer services:-
Czechs are primarily meat eaters; pork, beef and chicken based dishes are popular. Goose, rabbit, duck are found in many common dishes. Many of Europe's popular cakes and pastries have a Czech origin. From a marketing perspective, Chicago style Pizza would have to be positioned against the Czech's popular fried cheese.
The cultural differences between U.S. and Czechs are addressable, and should not unduly hamper Steve's business prospects. As a marketing strategy, Steve may wish to explore a few possibilities, such as, to provide:
The primary economical advantage to Steve would be the lower wage expectations by Czechs. Hofstede's four dimension indices (http://www.geert-hofstede.com/) can be used to evaluate the business climate at Czech:-
Power Distance Index (PDI): This represents the extent to which inequality in society is endorsed by people. The PDI of Czech is 57, as against the U.S. which is 40. Steve can therefore use his positional power, and expect Czech employees to be more subservient than the U.S. counterparts.
Individualism (IDV): This repr... As a marketing strategy, Steve may wish to explore a few possibilities, such as, to provide:Combo flavors - Chicago style pizza with Czech fried cheese.Differential discount pricing for kids and "generation-next", targeting young adults.Weekend packages for families with ambience as near as Czech cottages and summer houses.Sober, but caring hospitality.Q.2 What comparative advantages exist in the Czech Can Steve take advantage of theseThe primary economical advantage to Steve would be the lower wage expectations by Czechs. Hofstede's four dimension indices (http://www.geert-hofstede.com/) can be used to evaluate the business climate at Czech:-Power Distance Index (PDI): This represents the extent to which inequality in society is endorsed by people. The PDI of Czech is 57, as against the U.S. which is 40. Steve can therefore use his positional power, and expect Czech employees to be more subservient than the U.S. counterparts.Individualism (IDV): This represents the extent to which individuals are knit into tight groups, including extended family. A lower index indicates tight grouping, whereas, higher index reflects individualism. As against Czechs index of 58, the U.S. stands at 91. This means that relatively Czechs are more group (as well as, family) oriented. Steve can use this fact to market group discount pricing strategies on eateries. Steve should also use the advantage of knowing Czech culture for better market strategy.Masculinity (MAS): A higher index means assertive (masculine) behavior versus a lower index which indicates caring (feminine) traits. As against Czechs index of 57, the U.S. stands at 62. Although this is a marginal difference, yet it does indicate that Czechs would expect a
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